Federal Reserve Chair Janet Yellen is reluctant to raise interest rates because of her concerns about overseas economies and markets, she announced in a speech Tuesday.
As the broader stock market exulted in this dovish stance, bank stocks took a hit.
Higher rates are good for banks because it widens net interest margins as deposit rates stay low and lending rates are jacked up. This possibility, while real, does not alter the fact the bigger banks have not been lending prudently.
